HomeMy WebLinkAbout0214.094~_!ta~p:ri ____ 9_-,
April 7, 1994
HONo~BLe ClTY COUNCIL
Palo Alt"o~ California
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Xeebe'rs ot the Council:
At .the NoveMer 15', 1993 City Council meeting, Palo Alto Community
Child C.u:-e (PACCC) was. d.lrected to retm'n with a status r.eport on
its contract tor ad>Jinistr-ative services ',dth Child Development~
InCQrporated (COl) and on PACCC's 1:1anag€ment operations. The
pUk;pose of this report is to trans:r-lit PACCC! s status report to the
city Council.
hccor..panying PACCC's report ;\s a statement from the Transitional
V!3dership Teall'< endok:sing, in concept, PII.CCC· s roidterm strategic
phu. f.or restructuring the agency.
The Transitional Leadership Tean is comprised of PACCC Board
r"eabel::s, ~drdni$tr.ltive staff and teaching staff; members of the
Child Care Task Fo~ce and the JiU!i1(-'n Relations Com1l1ission: the
Cit~"6 Child Care Coordinator; and community members.
PACCC' s cOl\tt'act for services with COl addresses four main areas:
administration, aCCOUnting, hU1nan resources, and subsidy adminis
tration. In order to review the progress of the contract with
Cnl l l>ACC(.' established the contract Oversight Committee, comprised
of tho PACCC Board ,Vi~a-President, the PACCC Executive Director, a
P"ccc Center Oirector, the Cityrs Child Care Coordinator, an.d COl's
Executive Directcr.
Tho Contract Oversight COMmittee meets monthly and reviews the
contracted s~rvices provided by cor including analysis of profit
ability of centerfi according to age group served, development and
ir.lplementation of new financial procedures, development and imple
mentation,of new personnel policies and procedures, implementation
of practices to rnaximi~e enrollment at the centers, and assistance
to center directors in preparing their own budgets.
Whilo the Contract Oversiqht Committee meets regularly to discuss
various iasues that arise regarding the contract with cor I PACCC
haf;, "not required ern to provide the c'Jmmittee "lith written progress
reporl;s.
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PACCC has made! considerable progress In tho four ar.eas mentioned
above. lIowever, PACCC's continu(!d proqress to· ... ards financial
viabllity will depend on several factors including a ,sufficiently
st,a.ffed central offico, sI,.1ccessful efforts to rdise lIddltion<ll
funds from outside sources, and th~ ability of PACCC to Maintain
high enrollment by continuin9 to attk:act and retain families
seeking quality child care at affordable ~:ate$.
Subsi-ID! con_U~QJ;
city staff has worked closely .... ith P]!'CCC durihCj this fiscal year to
implement the recommendations r.l(ldo b;' the Auditol' 1n his Novembor
199"3, Audit Report, of Pi\CCC. Based on cQnttact I"lonttorinq visits,
informati'on provided by PACCC in ql.lart~tly report"s to the City ~ and
frequent conttr.unicatioJl with PACCC' s Subsidy Adninistrator and
Executive Director j staft believes tllat PlICcC has ef!ectlvel~'
i'Mlpleroented each o"f the Auditor's -=-econrH~_nljation5 identified in the
Subsidy l\dministration section of tho repot"t. Tilese include
maintaining proper dOCllf:'.lHltatlon of participants I incone
eligibility and residency n'"·ql,.li .... erconts. establi:=;hing prcc~dtlres to
record and review actl1al at.tendanco, ensu~ .. ing the accurate
calculation of the cost of services billed to the City~ providing
detailed monthly billing invoices to the Cit)', n,dntaininq a
waiting list bf\sed on the priOl"ltie.s. outlined in PACCC's 199)-94
Scope of Services, and recertif}'imJ fM':Ii1i(,5 at six-nonth inte~"vi\ls
to verify contin'led eligibility for subsidized se~vices.
On Harch 10, 1994, Human ,$:orvlces staff reco~r.1ende,l to th('! ~IUJ11ah
Rolations Cornraission that it appr-ovo PAC-CC's .... equost for F'Y 1991-95
funding. Tot<ll funding for the next f1scal year~ inclutling a 1.9
percent increase bClsed OJl the CPI, M:10unts t.o $352,065 ($275 j 6.39
for direct services and $76,425 for administrative over-head).
cit.y staff continues to ..... ork closely with P1\CCC to cont.inue to
IT'tt!::,::,ove the subsidy ad~inistl'"ation tor the ne->(t riscal :"'ear, These
improvements include establishing standal.'ds by Which a non-P}l.CCC
center (PACCC-aftiliate) rr,ay receive subsidy funds.
In its 1994,-95 fundinq proposal, PACCC has budgeted for 1.9 F'TI-;
positions to administer the subsidy progl'ar.'i. These pOSitions in
the' central office are essent"~al for-P.hCCC to maintain the progl"esS
it has made with the s'l.Ibsidy program and to rurther develop it
according to the agencyls goals al~d objeotives as stated in its.
1994-95 funding request.
r.l!.£g~K!I!nS iJ;J9nal "J._~_acJ e_!'_~_h11L __ 'l'..e am
The Transitional Leaden;hip Team has been r:-.ecting since January
1994 to discuss various models and budgets for redesigning the
configuration of PACCe' 5 fourteen centers and the restructuring of
the central office. I'ACCC has identified the ne-xt t'Wo YC.)I-S as a
time when this midterm restl:'ucture wi J 1 11C phased in. Due to many
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factors including licensing requirements, personnel issues, and the
nee.d to simultaneously provide continuous services to ·/00 familios,
PACCC'is reo,rqanization will be gradual and will reqUire adequato
time for planning, implementation, and analysis.
Conol!.1sjsm
PACCC's continued success will depend heavily on maintaining
adequate staffing levels in the central office. Administrative
suppo:t.,t is essential in order to ensure the timely collection ot
tuiti-on revenue, continue to properly administer and dove lop the
subsidy program, raise and manage outside funds, lCIaintain the
considerable pro9.ress made with City finance starf and COl in the:
clean-up of PACCC's financial and administrative operations,
implement new personnel polici2s and procedures, and continue 'to
increase quality in all of I"ACCC's centers by helping thi.>rn, to
successfully complete the tlational accreditation procass ;and
maintain ac~~reditation standards.
staff recommends that the COlweil direct PAcec to r-1.tUI::n in October
1994 with a status report in the areas of administration, accoullt~
ing, human resom;ces l and subsidy administration, after complotion
of the contract with COl.
staff also recommends that, at the same time, PACCC provide an
update on the status of PACCC's development and irl',plementation ot
its midterm strategic plan for restructuring' the agency.
Respectfully submitted,
~~~t~·W~
'Child Care Coor.dinator
nity services
11anag~~ n
Related CMRS:~~3
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